Unveiling Jio Financial Services 2023: Why Its Debut Sent Shockwaves through Markets! Will It Rebound at ₹180?

Jio Financial Services Ltd Share Price Analysis

Unveiling Jio Financial Services 2023: Why Its Debut Sent Shockwaves through Markets! Will It Rebound at ₹180?

Jio Financial Services Ltd Share Price Analysis

Jio Financial Services Ltd (JFSL) share price encountered a 5% lower circuit during its muted debut. Investors are wondering whether to buy, sell, or hold?

Following its spin-off from Reliance Enterprises Limited (RIL), the Jio Financial Services share price made its debut on both BSE and NSE on a Monday. However, the shares experienced a subdued start in the Indian stock market, opening at ₹265 on BSE and ₹262 on NSE. These values align closely with its estimated fair value of ₹261.85 (as determined on JFSL’s record date).

Unfortunately, the challenges for investors did not stop here; the share price continued to decline and reached an intraday low of ₹248.90 on NSE and ₹251.75 on BSE, triggering a 5% lower circuit on both exchanges.


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Market experts suggest that the fair value of Jio Financial Services share price is around ₹180 per share. The market is expected to correct further since the stock is currently trading at a significantly higher price than its fair value. Analysts estimate that, based on this fair value, the market capitalization of Jio Financial Services Ltd would be between ₹1.10 lakh crore and ₹1.15 lakh crore. As a result, those holding JFSL shares in their portfolio are advised to consider booking profits on any rebound in the stock and consider re-entering at around ₹180 per share. Explaining the reason behind the share price decline after its muted debut, Vaibhav Kaushik, Research Analyst at GCL Broking, stated, “The drop in Jio Financial Services share price was expected, as the stock was initially priced much higher than its fair value. While the market anticipated this correction after reaching levels around ₹330 to ₹340, it seems that institutional investors have chosen to secure their profits sooner.”

Further elaborating on the fair value assessment, the GCL Broking expert added that this adjustment would likely bring Jio Financial Services‘ market capitalization down to ₹1.10 lakh crore to ₹1.15 lakh crore, resulting in a share price around ₹180. The expert recommended that JFSL investors consider exiting during any price rebound.

Chandan Taparia, Associate and Technical Analyst at Motilal Oswal, suggested, “Investors who acquired Jio Financial Services shares through allocation are advised to hold the stock with a stop loss at ₹232.”

Shares of Jio Financial Services Ltd (formerly known as Reliance Key Ventures Ltd) are now listed for trading on the Exchange for a period of 10 trading days in the T Group of Securities.

 

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